19. A home-team baseball victory produces benefits for residents (in terms of hometown pride) that is both nonrival and nonexcludable. The graph below depicts the marginal benefits that Beatrice, Edward, and Charlotte (the residents of a very tiny town indeed) receive from home-team wins. The graph also depicts the marginal costs of achieving each victory.

a. Draw the total marginal benefit received by hometown residents. Graph your result carefully.

b. Determine the socially optimal number of wins. Indicate this amount on your graph.

Transcribed Image Text:

Marginal benefit, marginal cost $250 MC 200 150 MBB 100 MBE 50 0 25 MBC 50 50 75 100 Quantity of wins